Embattled 1MDB gets nod for mega-project in Kuala Lumpur

1MDB Real Estate Sdn Bhd, a subsidiary of scandal-shaken Malaysian sovereign investment fund 1Malaysia Development Berhad led by embattled Prime Minister Najib Razak, has received “in principle” the planning approval for its Bandar Malaysia development from Kuala Lumpur City Hall.

Bandar Malaysia is an urban development in a southern suburb of Kuala Lumpur whose master plan shows a mixed-used development and a transport gateway across a 197 hectare-site.

“With this planning approval, the value proposition of Bandar Malaysia is now clear and we are another step closer to realising our vision of making Bandar Malaysia the country’s leading transit-oriented development,” 1MDB RE chief executive officer Azmar Talib said.

Having previously shortlisted four bidders, 1MDB RE, the master developer of Bandar Malaysia, said “the reputable domestic and international property specialists” were currently conducting detailed due diligence to become development partners in project.

“We are confident to receive final and binding proposals within the next two weeks, select preferred bidders and execute definitive documentation, before the end of the year,” Azmar said.

Bandar Malaysia is planned to be the gateway for the new high speed rail-line to Singapore and become a central transport hub for Greater Kuala Lumpur. The development also includes plans for “establishing a business and creative enterprise hub and becoming a retail, lifestyle and tourism destination.”

Meanwhile, the political noise surrounding 1MDB continues, with an domestic probe into the fund ongoing and more countries looking into business relations with Malaysia, namely Australia where the Australian Securities and Investments Commission has launched investigations into local companies connected to 1MDB via offshore firms.

Furthermore, Bank of America Merrill Lynch’s head of Asean economics Chua Hak Bin said that the ringgit risks further depreciation until the uncertainties surrounding the troubled 1MDB are resolved.

“The current political crisis is something which a lot of foreign investors are constantly asking about because it is difficult for them to fully understand what is going on,” Chua said.

1MDB Real Estate Sdn Bhd, a subsidiary of scandal-shaken Malaysian sovereign investment fund 1Malaysia Development Berhad led by embattled Prime Minister Najib Razak, has received “in principle” the planning approval for its Bandar Malaysia development from Kuala Lumpur City Hall.

Bandar Malaysia is an urban development in a southern suburb of Kuala Lumpur whose master plan shows a mixed-used development and a transport gateway across a 197 hectare-site.

“With this planning approval, the value proposition of Bandar Malaysia is now clear and we are another step closer to realising our vision of making Bandar Malaysia the country’s leading transit-oriented development,” 1MDB RE chief executive officer Azmar Talib said.

Having previously shortlisted four bidders, 1MDB RE, the master developer of Bandar Malaysia, said “the reputable domestic and international property specialists” were currently conducting detailed due diligence to become development partners in project.

“We are confident to receive final and binding proposals within the next two weeks, select preferred bidders and execute definitive documentation, before the end of the year,” Azmar said.

Bandar Malaysia is planned to be the gateway for the new high speed rail-line to Singapore and become a central transport hub for Greater Kuala Lumpur. The development also includes plans for “establishing a business and creative enterprise hub and becoming a retail, lifestyle and tourism destination.”

Meanwhile, the political noise surrounding 1MDB continues, with an domestic probe into the fund ongoing and more countries looking into business relations with Malaysia, namely Australia where the Australian Securities and Investments Commission has launched investigations into local companies connected to 1MDB via offshore firms.

Furthermore, Bank of America Merrill Lynch’s head of Asean economics Chua Hak Bin said that the ringgit risks further depreciation until the uncertainties surrounding the troubled 1MDB are resolved.

“The current political crisis is something which a lot of foreign investors are constantly asking about because it is difficult for them to fully understand what is going on,” Chua said.